DMA Releases 'Direct Marketing Facts and Figures in the Insurance Industry'
January 24, 2008 — Insurance marketers last year spent $6.81 billion on direct marketing-related advertising expenditures, which in turn generated more than $55.53 billion in US sales. That is an impressive return on investment of $8.15 for every dollar spent. These are two of the top findings from the Direct Marketing Association’s (DMA) new report “Direct Marketing Facts and Figures in the Insurance Industry.”
“DMA is releasing ‘Direct Marketing Facts and Figures in the Insurance Industry’ due to popular demand,” DMA Research Manager Michelle Tiletnick said. “Last year, we released the groundbreaking ‘Marketing Strategies for the Financial Services Industry,’ which was very successful. Based on feedback we received, customers wanted us to separate insurance from the rest of the financial services. They wanted a more focused, drilled-down report that looked exclusively at the insurance segment.”
“This new report does that, shining DMA’s research spotlight on the employment of direct marketing to sell insurance products in the United States,” Tiletnick said. “Additionally, our report allows insurance companies to look at the current state of their multichannel direct marketing efforts and benchmark them against this report. Also, it gives them insight into what their near-term direct marketing future will hold.”
This 116-page report is divided into eight chapters, including an overview chapter on the insurance sector, and seven chapters categorized by advertising media type: broadcast, direct mail, insert media, commercial email, Internet marketing, print media, and telephone marketing. Also, nearly 70 charts help readers benchmark their own direct marketing expenditures, sales, and employment.
Some of the other key findings from this report include:
· Direct marketing-driven sales are expected to grow at a rate of 7.6 percent a year from 2007 to 2012.
· Direct marketing-driven employment is projected to rise concurrently at a rate of 3.1 percent each year from 2007 to 2012.
· Commercial email expenditures will skyrocket, seeing the largest increase in direct marketing advertising spending in the insurance sector at 23.4 percent a year from 2007 to 2012.
· The next largest advertising expenditure is projected to be in Internet, at 18.7 percent each year from 2007 to 2012.
· Print advertising and telephone marketing spending will grow the least, each increasing at 3.4 percent a year from 2007 to 2012.
· Direct mail spending is expected to reach $2.2 billion in 2012, up from 2007’s $1.7 billion.
· Insert media advertising expenditures are expected to grow 7.4 percent each year from 2007 to 2012.
· Increases in broadcast advertising spending are expected to reach 6.2 percent annually between 2007 and 2012.
“Direct Marketing Facts and Figures in the Insurance Industry” costs $135 for DMA members and $240 for non-members and is now available for download at DMA’s Bookstore. To purchase, click here.
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